American Gas - May 2012 - (Page 15)

THREE NEW Pennsylvania laws will mean big changes in the jurisdictional responsibilities of the Pennsylvania Public Utility Commission (PUC), Chairman Robert F. Powelson told American Gas in March. One of the new measures allows utilities to fund upgrades of aging infrastructure through a surcharge on customer bills— Powelson referred to it as an “infrastructure replacement mechanism”—rather than only when filing a rate case. “It is a key concern not only to the PUC but also to people in the industry that traditional rate cases are not the proper remedy to get aging infrastructure replaced in a timely fashion,” Powelson told American Gas. “One of our utilities has an 85-year replacement program for cast-iron and bare steel pipe, and we said as a commission that this is not acceptable in this day and age. “Now we have the tools in Pennsylvania PUC Chairman Highlights Three New State Laws “Act 11 is a measure that takes the whole issue of regulatory lag out of the equation and fast-forwards the replacement of castiron and bare steel distribution pipeline,” he said. “We’re going to create an incentive for companies to get outside of the traditional rate case—which, by the way, is costly to consumers—and replace these critical pieces of infrastructure.” He added, “The other piece of Pennsylvania Public Utility Commission Chairman Robert F. Powelson talks about new Pennsylvania laws—dealing with infrastructure replacement, unconventional natural gas drilling and enforcement of federal pipeline safety laws—that will mean big changes in the PUC’s jurisdictional responsibilities. place that provide an incentive for gas companies to move forward aggressively with capital expenditures around the cast iron–bare steel problem that we have in many of our service territories in Pennsylvania,” Powelson continued. ad index Aclara .......................................................................3 AGA Accounting Meetings ................................................ 33 AGA Publications/Techstreet.............................................. 34 American Gas Digital Edition ................................................4 A.Y. McDonald Mfg. 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MAY 2012 AMERICAN GAS 15 this legislation that should not be overlooked is the fact that you’re going to see a lot of contractors deployed here in Pennsylvania over the next five years to do these pipeline replacement programs. We think that’s good for the Pennsylvania economy.” The second measure, Act 13, au- thorizes Pennsylvania counties to collect a fee to mitigate the effects of unconventional natural gas drilling within their borders. Counties had an April 16 deadline to pass ordinances implementing the fee. If any county chooses not to impose the fee, municipalities within that county have until June 13 to adopt resolutions forcing its imposition. At least 50 percent of the municipalities in the county or municipalities representing at least 50 percent of the county’s population must adopt such resolutions. “It’s purely a local option,” Powelson said. “It’s not the state capital or the governor mandating this. The counties have the option, but if they don’t take it, the municipalities in those areas have the capability to basically trump the hand of the counties and move forward with the impact fee.” Fees, paid by producers, are based on the average annual price of gas in the calendar year in which the fee is imposed. After distribution of money specifically earmarked in the law to offset the statewide impact of drilling, 60 percent of the remainder will go to affected municipalities and 40 percent toward statewide initiatives. Finally, Powelson pointed to Act 127, which expands the PUC’s jurisdiction to include enforcement of federal pipeline safety laws relating to natural gas and hazardous liquids facilities that are not operated by public utilities. “This is a tremendous opportunity for the commission,” Powelson said. “It helps fill a void that existed in our state and is a key step on the natural gas safety front.” Powelson said, “The responsibilities given to the PUC by the Pennsylvania General Assembly are considerable, but we are well positioned to take on these challenges.” www.puc.state.pa.us/naturalgas/naturalgas_ index.aspx http://www.puc.state.pa.us/naturalgas/naturalgas_index.aspx http://www.rustrol.com

Table of Contents for the Digital Edition of American Gas - May 2012

American Gas - May 2012
Contents
President’s Message
In the News
Advertisers’ Index
Ask AGA
It’s Unanimous: Pipeline Safety Is Key
The Letter of the Law …
Places to Be
Jobline
Marketplace
Facts on Gas

American Gas - May 2012